The following errors occurred in the accounting records of Over Side, Inc.:
a. The company accountant recorded the receipt of cash for service revenue by debiting Cash for $1,140 instead of the correct amount of $1,410. Service revenue was also credited for $1,140, the incorrect amount.
b. A $150 purchase of supplies on account was recorded by debiting Accounts Payable and crediting Supplies.
c. The company accountant recorded an $800 payment of rent by debiting Rent Expense for $8,000 and crediting Cash for $8,000.
d. In recording an $815 payment on account, Accounts Receivable was debited and Cash was credited.
1. Prepare the necessary journal entries to correct each of these errors.
2. For each of the errors, determine if the error would cause net income to be overstated, understated, or unchanged.

  • CreatedJuly 08, 2015
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